What was the reported intangible assets, net amount for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
April 23, 2025
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ | 3,690,691 | $ 1,455,349 |
| Restricted cash | - | 840,143 | |
| Accounts receivable, net of an allowance for credit losses | |||
| of $74,296 and $105,953, respectively | 6,102,611 | 3,565,178 | |
| Other | 820,000 | - | |
| current | |||
| receivable | |||
| Current | 1,797,429 | 1,382,859 | |
| portion | |||
| of | |||
| contract | |||
| assets | |||
| Prepaid and other current assets | 1,803,912 | 1,537,556 | |
| Total current assets | 14,214,643 | 8,781,085 | |
| Goodwill, net | 52,556,496 | 66,184,756 | |
| Intangible assets, net | 45,678,810 | 50,358,496 | |
| Contract assets, net of current portion | 13,317,603 | 10,981,453 | |
| Operating lease right-of-use assets | 1,603,081 | 1,272,436 | |
| Other assets | 2,206,748 | 828,551 | |
| Total assets | $ | 129,577,381 | $ 138,406,777 |
| Liabilities and Members' Equity | |||
| Current liabilities: |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the intangible assets, net, were reported as $45,678,810 in 2024 and $50,358,496 in 2023. This indicates a decrease in the net intangible assets from 2023 to 2024. Intangible assets typically include items like trademarks, patents, and brand recognition, which are not physical but have value to the company. The 'net' value means that any amortization or impairment has already been accounted for.
For a prospective franchisee, this information provides insight into the financial health and valuation of 1 800 Packouts. A decrease in intangible assets could be due to various factors, such as amortization (the systematic reduction of the book value of an intangible asset), impairment (a sudden decrease in the recoverable amount of an asset), or a re-evaluation of the asset's value. It's important to note that while intangible assets are not physical, they can significantly contribute to a company's competitive advantage and brand strength.
Understanding the composition and changes in intangible assets can help a franchisee assess the long-term value and stability of the 1 800 Packouts franchise. It would be prudent for a potential franchisee to inquire about the specific intangible assets that make up this value and the reasons for any significant changes from year to year. This due diligence can provide a more comprehensive understanding of the franchise's financial position and future prospects.